BRUSSELS Jan 13 The euro zone should be able to
agree how to restructure and finance a troubled bank in the
space of a single weekend, Sabine Lautenschlaeger, Germany's
candidate for a vacant seat on the European Central Bank's
board, said on Monday.
After more than a year of talks, ministers from across the
European Union agreed in December a scheme to close failing
banks - a vital step towards completion of the bloc's banking
union - but the process will be complex and politicised.
"I don't have a better solution for you with respect to the
structure of decision-making," Lautenschlaeger told a European
parliament committee in Strasbourg.
Lautenschlaeger, who is also Germany's Bundesbank vice
president, said having a European Resolution Mechanism and a
common fund was very important, stressing the necessity of being
able to wind up a troubled bank over a weekend.
"We need to have a structure where it is possible to start a
resolution on Friday night and to finish it on Monday morning at
1 o'clock because then Japan, Tokyo opens. That is a really
important requirement," she said.
Ways to achieve such a swift outcome were up for discussion,
Despite progress, central elements of the banking union
project are still missing. For one, Germany continues to stand
firm against the use of euro zone money to back a scheme for
tackling troubled banks.
Completion of a joint, mutualised resolution fund of roughly
55 billion euros ($75 billion) is expected only in 2026.